Certified Government Financial Manager (CGFM) Practice Exam 2026 - Free CGFM Practice Questions and Study Guide

Tribal governments operate with limited sovereignty. This concept refers to the unique legal status of Native American tribes within the United States, whereby they possess a certain degree of self-governance and authority over their internal affairs, but this sovereignty is constrained by federal law and the U.S. Constitution.

Tribal sovereignty allows these governments to make decisions regarding their own governance, cultural practices, and resource management. However, this sovereignty is not absolute; it is limited by the federal government's authority to legislate on matters impacting tribal lands and communities. For instance, while tribes can govern themselves, they remain subject to federal jurisdiction when it comes to criminal matters, economic development regulations, and environmental laws.

In contrast, complete sovereignty would imply total independence from any external authority, which does not apply to tribal governments in the U.S. Similarly, shared sovereignty might suggest a mutual recognition and partnership in governance, which is not consistent with the legal framework governing tribal affairs. Federal sovereignty generally refers to the power and authority exercised by the national government, further highlighting the distinct limitations placed on tribal sovereignty.